bankruptcy filing time limits

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Bankruptcy filing Limitations

There are Bankruptcy Filing Limitations which require you to wait until your next discharge.  There are also other limitations.   You can file a Chapter 13 the day after your Chapter 7 case closes but you will not get a discharge in the second Chapter 13 case. You cannot file a Chapter 7 until 8 years after the prior Chapter 7.  This gets the benefit of the stay which may allow you to manage Student loans, a foreclosure or Income Tax debt over a 3 or 5 year period.   The foreclosure can be stopped and the payments caught up.   IRS and Student loan garnishments can be stopped by the stay sometimes paying little or nothing to the debt.

If you need to strip a second mortgage you have to get the discharge in Kentucky so you may not want to file a Chapter 20 (Chapter 7 followed by a Chapter 13)..  Only individuals can file a Chapter 13.  Corporations and business entities can only file a Chapter 7 or 11.  There is a dollar limit of about $360,000 of unsecured debt and $1,250,000 in secured debt in a Chapter 13 but no dollar limit for a Chapter 7.

When you file a Chapter 7 or Chapter 13 bankruptcy, a temporary court order called a stay goes into effect.  Normally the goal is to get the permanent court order called a discharge at the end of the case.   You can only obtain one discharge every few years.  But the Chapter 13 stay allows you to manage debts which survive a Chapter 7.


Bankruptcy Time Limitations

These are the Bankruptcy Filing Time Limitations. The periods are calculated from the date you file the first bankruptcy until the date your file the next bankruptcy.

In order to convert a Chapter 13 to a Chapter 7 and get a discharge, you must have qualified for a Chapter 7 at the time of filing. If you filed a Chapter 13 because you were not able to qualify for a Chapter 7, then you will not be able to convert.  You have to instead dismiss and file a new case as a Chapter 7.  This is because the time runs from date filed to date filed.

These are the amounts of time you have to wait from one discharge until you can get the next.

Type of Original Discharge

Next Case is a:

Waiting period

Statute

Chapter 7 discharge

Next Chapter 7

8 years

11 USC 727 (8)

Chapter 7 discharge

Next Chapter  13 discharge

4 years

11 USC 1328 f

Chapter 13 paid over 70%

Next Chapter 7

no waiting

Chapter 13 paid less than 70%

Next Chapter 7

6 years

11 USC 727 (9)

Chapter 13 discharge

Next Chapter 13

2 years

11 USC 1328 f